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Uganda exported merchandise worth $634.43m (about sh2.410 trillion) in March 2024, which was 0.2% higher than $633.0m (about sh2.402 trillion) of the previous month.

This is according to a new report by the finance ministry on the performance of the economy, which was shared on X, formerly Twitter, on Tuesday, May 21, 2024.

The report says this increase was mainly due to a rise in export receipts from tobacco, simsim, hides and skins as well as gold.

The merchandise imports also increased by 14.1% to $1,037.84m in March 2024, from $909.54m the previous month.

“This was mainly attributed to an increase in private sector imports, particularly vegetable products, beverages, fats and oil; mineral products (excluding petroleum products); and plastics, rubber and related products,” the monthly report for April 2024 says.

As a result of the increase in the import bill surpassing the gains in export receipts, the ministry says Uganda’s trade deficit with the rest of the world widened by 45.9% to $403.41m in March 2024 from $276.54m the previous month

It also reported that overall, economic activity strengthened and prospects about business conditions were optimistic.

This is shown by the high-frequency indicators of economic activity — Composite Index of Economic Activity (CIEA), Purchasing Managers' Index (PMI) and Business Tendency Index (BTI), which all edged upwards, it says.

“The Composite Index of Economic Activity edged further upwards to 162.38 in March 2024 from 162.19 the previous month, signalling an improvement in economic activity. The rise in the CIEA was majorly on account of increased activity in the agriculture and industry sectors,” it adds.

According to the report, the PMI reversed its downward trend and rose above the threshold of 50 to 52.6 in April 2024 from 49.3 the previous month.

“This uptick signalled an improvement in business conditions driven by increased demand, which supported a rise in new orders and output. The PMI also revealed a likely increase in staff among firms pointing towards a likelihood that firms hired new staff during the month as the outlook for output going forward looked promising,” it said.

The report also said at the sectoral level, the construction, industry, services and wholesale and retail sectors all recorded increased activity.